CLA (CliftonLarsonAllen LLP), one of the leading professional services firms in the United States, has secured $7.6 million in limited partner Opportunity Zone-eligible capital for The Backyards apartments, a project in South St. Paul, Minnesota. The Backyards comes on the heels of a successful capital raise in 2021 for Phase 1 of this project, The Yards apartments.
A national leader in the Opportunity Zone space, CLA combines deep experience in the real estate industry with tax and investment management services to offer stakeholders broad insight into the full benefits of the Opportunity Zone program. Since 2019, the firm has raised more than $500 million for Opportunity Zone projects. The Backyards is a multifamily development located at the corner of Grand Avenue and Concord Exchange in South St. Paul. The Backyards is two stories of pre-cast underground parking with four stories of wood-frame construction totaling 111 units. Phase 2 will offer residents a comprehensive market-rate amenity package that leverages the amenities of Phase 1, including the pool deck. Construction is slated to begin in the second quarter of 2022.
Spearheading the project is The Beard Group, a full-service real estate company specializing in redevelopment, mixed-use, and multifamily projects. Bill Beard, The Beard Group president and CEO, worked closely with CLA Wealth Advisors to secure funding. This comes after CLA successfully raised $11 million of limited partner equity for Phase I, The Yards, a 154-unit multifamily building that is currently under construction. These projects will bring much needed new multifamily housing supply to a market that has not seen a new project in 30 years.
“The Backyards would not have been possible without CLA raising the additional capital needed,” said Bill Beard, president and CEO of the Beard Group. “They have been an invaluable consultant and we look forward to what The Backyards will bring to the city of South St. Paul.”
CLA played an instrumental role in the capital raise, and the firm also provided tax advisory and compliance services, financial model development support, consultations on structure, and guidance on Opportunity Zones, deploying its full suite of services.
“CLA is pleased to help bring this transformational capital,” said Lucas Whelan, CLA capital markets senior analyst who oversaw the capital raise. “This project, including Phases I and II, has been a true team effort, led by the Beard Group, with significant backing by the city of South St. Paul, the investor group, and all parties that participated in making this happen.”
Whelan continued, “We look forward to the Yards and Backyards opening in the coming year and seeing the continued development of this corridor in South St. Paul.”
Securities products, merger and acquisition services, and wealth advisory services are provided by CliftonLarsonAllen Wealth Advisors LLC, a federally registered investment advisor and member FINRA, SIPC.
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